This week in markets started with higher activity as oil continued its recent strong gains and gold’s recovery also seemed to be gathering pace. The dollar was near six-month highs while Asian and European shares were mostly more cautious. This preview of weekly data looks at XAUUSD and GBPUSD ahead of critical meetings of central banks over the next few days.
Last week the European Central Bank called for a single hike, which was not widely expected, taking the main refinancing rate to 4.5%. The Central Bank of the Russian Federation also hiked its key rate a full percent to 13%, citing inflation and the ongoing problems in the workforce as a result of the war. The euro made losses around the ECB’s statement but seems to have stabilised around $1.06.
This is a critically important week in monetary policy, with the Fed, BoE, PBoC, BoJ, SNB, Riksbank and Norges Bank all due to release their statements. The Fed is the most significant, with a hold at 5.25-5.5% likely although comments in the press conference are likely to drive the dollar. The BoE meanwhile is expected to hike to 5.5%, with the press conference there also important for sentiment on November’s decision.
Traders should not ignore regular data this week, primarily British, Japanese and Canadian inflation but also German PMI on Friday plus regionally important releases like South African inflation on Wednesday. Given the importance of monetary policy this week, some attention might shift back to forex from commodities.
Last week the European Central Bank called for a single hike, which was not widely expected, taking the main refinancing rate to 4.5%. The Central Bank of the Russian Federation also hiked its key rate a full percent to 13%, citing inflation and the ongoing problems in the workforce as a result of the war. The euro made losses around the ECB’s statement but seems to have stabilised around $1.06.
This is a critically important week in monetary policy, with the Fed, BoE, PBoC, BoJ, SNB, Riksbank and Norges Bank all due to release their statements. The Fed is the most significant, with a hold at 5.25-5.5% likely although comments in the press conference are likely to drive the dollar. The BoE meanwhile is expected to hike to 5.5%, with the press conference there also important for sentiment on November’s decision.
Traders should not ignore regular data this week, primarily British, Japanese and Canadian inflation but also German PMI on Friday plus regionally important releases like South African inflation on Wednesday. Given the importance of monetary policy this week, some attention might shift back to forex from commodities.